Pizza Hut to Close 68 UK Restaurants, 1,210 Jobs Lost

Pizza Hut is set to close 68 restaurants and 11 delivery sites across the UK, resulting in the loss of 1,210 jobs, after the company operating them, DC London Pie Limited, fell into administration. The firm appointed FTI Consulting as administrators on Monday.

However, the global parent company, Yum! Brands, has stepped in to rescue 64 of the affected sites, preserving 1,276 jobs and ensuring that these locations continue to operate under new management. Despite this, the closure of a significant portion of its UK operations highlights ongoing struggles for the brand in the competitive dining market.

Financial Troubles for Pizza Hut’s UK Operations

Pizza Hut UK has faced repeated challenges in recent years, and just under a year ago, the company entered into administration. DC London Pie, which owns the rights to Pizza Hut restaurants in the UK, had acquired the business out of insolvency earlier this year. Alongside its UK operations, DC London Pie also holds franchises in Sweden and Denmark.

A spokesperson for Pizza Hut UK expressed relief at securing the future of 64 locations, stating, “We are pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs.”

Competitive Pressures in the UK Pizza Market

Pizza Hut’s challenges are not just financial. Zoe Adjay, senior lecturer in hospitality at the University of East London, pointed out that while Pizza Hut was a leader in the fast-food industry in the UK during the 1970s, the company has struggled to remain relevant amidst fierce competition. “The pizza market has become a lot more upmarket,” said Adjay, noting the rise of high-end pizza chains that have captured a significant share of the market.

In addition, Pizza Hut has struggled to establish a strong presence on social media, which has helped its competitors maintain and grow their customer base.

Broader Economic Impact

Danni Hewson, head of financial analysis at AJ Bell, suggested that increased operating costs and consumer caution have contributed to Pizza Hut’s difficulties. “Making a success of big-name casual dining businesses is a tough job,” said Hewson, adding that while DC London Pie had taken over the brand less than a year ago, it was clear that the challenges were too significant to overcome.

Yum! Brands’ Strategic Acquisition

Despite these difficulties, Yum! Brands, which owns Pizza Hut globally, has managed to save a portion of the UK operations through a targeted acquisition. Nicolas Burquier, managing director for Pizza Hut Europe and Canada, explained, “This targeted acquisition aims to safeguard our guest experience and protect jobs where possible.” He added that the company’s immediate priority is to ensure operational continuity at the acquired locations and to support staff during the transition.

The closures and job losses mark another chapter in the ongoing evolution of the pizza and casual dining industries in the UK, where market dynamics and shifting consumer preferences are continually reshaping the landscape.

Credit: BBC News